Committing public funds to support failing company pension schemes would expose the taxpayer to unknown future claims and costs.

That’s the view of Treasury Minister Alfred Cannan after he was urged to intervene on behalf of pensioners left out of pocket by the collapse of the Ronaldsway Shoe Company pension scheme.

Former managing director Jack Yardley contacted Mr Cannan after the launch of pension freedoms was announced in the Budget.

In his Budget speech, the Treasury Minister criticised lobbying against the reforms by certain pension providers but added he was not surprised ’given the fees these companies and their directors receive for handling and managing billions of pounds of pension funds’.

That comment was seized on Mr Yardley, who has been urging the government to help Ronaldsway Show Company pensioners who have seen their pensions drastically cut or frozen.

Since the scheme became the first in the Isle of Man to be wound up, about £500,000 has been paid out in trustee, administration and legal fees.

That includes the costs of winding up the scheme which have been estimated at about £200,000.

Mr Yardley asked Mr Cannan if he has changed his stance and would now be willing to contribute the £200,000 required.

In his reply, the Treasury Minister pointed out he had made no commitment in his Budget to funding any pension scheme shortfall.

He said: ’The winding up of the scheme was a legal process.

’Treasury does have powers to issue directions to the trustees if they feel they are not taking all reasonable steps in the winding up - or the steps the trustees are taking are being done with unreasonable delay.

’While I am concerned for those affected by the problems facing the scheme, I am unable to commit public funds in the manner suggested.

’To do so would expose taxpayer’s money to other potential claims and thus an unknown future quantum.’

In 2005, the UK introduced a pension protection fund, funded by a levy on all defined benefits schemes.

There is no plan to introduce such a fund in the Isle of Man.

Mr Cannan accepted there is no equivalent of the Financial Assistance Scheme or Pension Protection Fund here but that some more general provision was available to older people in the form of the state pension and income support.